This follows on March 12's Signposts: "Volkswagen slashes 50,000 jobs after profits collapse by nearly half".
From Reuters, June 26:
- Restructuring could be biggest in auto industry history
- CEO Blume tried to enforce major cuts in 2024, but faced union resistance
- Shutting Hanover, Zwickau, Emden and Audi's Neckarsulm could axe more than 45,000 jobs
- Supervisory board members to discuss restructuring on July 9, sources say
- VW's works council, IG Metall and Lower Saxony vow to resist cuts
Volkswagen is considering shutting four German factories and ramping up job cuts to as many as 100,000, two people familiar with the matter said on Friday, in what could be the biggest ever overhaul in the industry.
Members of VW's supervisory board have been informed of the plans, which are due to be discussed at a July 9 meeting, the people said.
The move comes as the carmaker faces mounting pressure from Chinese rivals, stiff tariffs on car imports into the United States, as well as dwindling demand in Europe, which the company has said makes its business model unsustainable.Closing the plants at Hanover, Zwickau, Emden and Audi's Neckarsulm site would put more than 45,000 jobs at risk, according to the people. That would add to the 50,000 cuts that are currently planned.
In absolute terms, laying off 100,000 people and axing four assembly plants would be the largest restructuring in automotive industry history.It would be comparable to major shake-ups by GM leading up to and during its 2009 bankruptcy and in the early 1990s when it cut as many as 74,000 jobs over four years and shut or idled 21 plants.
Volkswagen CEO Oliver Blume presented the plans to senior executives earlier this week to rally support for deep cuts likely to face fierce resistance from unions and the state of Lower Saxony, the carmaker's second-largest shareholder.The overhaul was first reported by Manager Magazin, which also said the world's No. 2 automaker would cut investment by about 15% to just over €130 billion ($148 billion) over the next five years.
Blume and Chief Financial Officer Arno Antlitz aim to fundamentally restructure the 89-year-old company, including spinning off the core VW brand and parts operations into separate entities, the magazine added, citing sources.Volkswagen shares were trading at 16-year lows on Friday, down 3.4% at 1335 GMT, suggesting investors were sceptical the plan would succeed.
“The high costs are merely a symptom, not the cause. They do not address the root cause, which is weak sales," Ingo Speich of Volkswagen shareholder Deka told Reuters.
"VW must bring attractive products to market that are in high demand; that would put an end to the debate over costs.”....
....MUCH MORE
And on one of Doktor P's namesakes (the other, the Ferdinand, was a tank-destroyer, not nearly as well-engineered), March 10/11:
Porsche's €3.9bn writedown cuts automotive profit by 98% in EV retreat
